Does an Environmental Marketing Strategy Influence Marketing and Financial Performance? A Study of Indonesian Exporting Firms

Roby Setiadi (), Kardison Lumban Batu () and Harry Soesanto ()
Additional contact information
Roby Setiadi: STIE Cirebon
Kardison Lumban Batu: Politeknik Negeri Pontianak
Harry Soesanto: Faculty of Business and Economics, Diponegoro University

Tržište/Market, 2017, vol. 29, issue 2, 177-192

Abstract: Purpose – Broadly speaking, the implementation of green practice leads to higher performance in exporting firms. To test this concept empirically, this study proposes environmental marketing strategy as an antecedent of product differentiation and cost leadership as a means to promote marketing and financial performance. Design/Methodology/Approach – This study was conducted on 388 respondents serving as operational, production, and marketing managers of Indonesian exporting firms and used structural equation modelling (SEM) with AMOS 18 as an analysis technique. Findings and implications – The findings revealed that environmental marketing strategy significantly influences product differentiation and cost leadership. More specifically, product differentiation simultaneously influences marketing and financial performance. However, cost leadership influences financial performance but not marketing performance. This study implies the importance of environmental orientation in setting a firm strategy and promoting the performance of international firms. Limitations – The measurement items proposed in this study were adopted from studies conducted in developed countries; they have not been proven appropriate for direct application in developing countries such as Indonesia. Originality – This study is original in that it explores the importance of environmental studies in setting a firm strategy and promoting the performance of international business.

Keywords: green sensitivity; environmental culture; environmental marketing strategy; product differentiation; cost leadership; marketing and financial performance (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hrcak.srce.hr/file/281372 (application/pdf)
None

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zag:market:v:29:y:2017:i:2:p:177-192

Ordering information: This journal article can be ordered from
Tržište/Market, Faculty of Economics and Business, Trg J. F. Kennedy 6, 10000 Zagreb, Croatia.
http://www.efzg.unizg.hr/trziste

Access Statistics for this article

Tržište/Market is currently edited by Đurđana Ozretić Došen

More articles in Tržište/Market from Faculty of Economics and Business, University of Zagreb Contact information at EDIRC.
Bibliographic data for series maintained by Tanja Komarac ( this e-mail address is bad, please contact ).